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Monday, January 17, 2011

Increase in Taxi fare in Dubai

RTA to increase taxi fare in Dubai
New tariff increase set as RTA looks to cover costs due to soaring fuel prices

Staff Report
Published: 14:35 January 16, 2011

Taxi fares in Dubai are still considered among the cheapest among the metropolitan cities, the RTA said.
Image Credit: Xpress/Javed Nawab
Dubai: There will be an increase of 11 fils per one kilometre in the in the taximeter tariff from January 21, the Roads and Transport Authority (RTA) announced on Sunday.

Eisa Abdul Rahman Al Dosari, the CEO of Public Transport, announced the increase, and said that the increase was not intended for generating profit, but to cover rising fuel prices.

Al Dosari said that the last tariff increase allowed by the Public Transport Agency was in 2005.

"Despite the fact that fuel prices have continued to rise over the past years, the tariff remained fixed. The current taxi tariffs of Dh1.6 per kilometre, has now been increased to Dh1.71 per kilometre; which works out as an increase of only 11 fils per each kilometre or Dh2.20 per twenty kilometres. This increase, however, does not apply to meter starting tariff," stated Al Dosari.

He said that over the past period, extensive financial studies and analyses were conducted with RTA officials to reconsider the taxi tariff.

These studies were submitted to the Department of Finance which endorsed it and accordingly this tariff revision was made.

"Over the last period, we have faced a serious problem with the franchise companies operating in Dubai, namely Dubai Taxi, Cars Taxi, Metro Taxi, National Taxi, and Arabia Taxi. These companies complained of the high fuel prices that do not match to the current tariff in place, which might result in them incurring losses or even ceasing business altogether. That is why we opted for this solution and introduced this marginal increase, which all community segments can afford in an effort to make the franchise companies operate," he added.

He noted that taxi fares in Dubai were still considered among the cheapest among the metropolitan cities.

"RTA, represented by the Public Transport Agency, has always been keen on improving the performance of franchise companies in a bid to increase the level of services provided to residents, tourists and visitors hailing to Dubai from all over the world," said Al Dosari.